https://www.datarooms.blog/why-virtual-data-rooms-are-better-than-physical-ones/
A virtual data room is a secure way to share sensitive documents with multiple parties online. They let you restrict who can access what in a secure environment and have auditing features which make it easy to keep tabs on who is able to access which files. They also come with advanced security measures like encryption, two-factor authentication, and watermarks that can deter unauthorized file sharing and information leaks.
Many businesses choose to use free cloud storage tools and web-based file sharing services for their data-sharing requirements however, they don’t have the ability to set permissions in granular fashion such as auditing, watermarking, and auditing features that data rooms provide. When you are trying to raise capital or close a deal, or sell your business, you don’t want confidential information to fall in the wrong hands.
If you require a pre-planning data room, portal or a main due diligence data room, the best VDR providers provide a set of reports that allow administrators to easily monitor user activity from who has visited what to when. This is especially important when working with a third-party to ensure confidentiality, especially after the room has been closed.
The top VDR providers also allow you to specify if the document you want to download can be viewed, printed or downloaded from the site. This is helpful when working with buyers that have strict data requirements. They can also put dynamic watermarks on viewed or printed pages of documents to further safeguard against data leaks and illegal file sharing.
